EW

Edwards Lifesciences Corporation stock research

Jun 30, 2024

FY2024 Q2

Edwards Lifesciences (EW) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially and remained essentially stable year over year, reflecting a lower cost of revenue relative to revenue in the current quarter.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved sequentially and remained essentially stable year over year, reflecting a lower cost of revenue relative to revenue in the current quarter.

  • The strongest observable driver was the reduction in cost of revenue compared to the prior quarter, which supported gross margin expansion.
  • Gross margin improved from the previous quarter and was slightly higher than the same quarter one year earlier. Revenue and gross profit increased in both comparisons.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

79.9%

Gross profit

$1.1B

Revenue

$1.4B

Cost of revenue

$275.5M

Quarter-over-quarter change

+1.5 pts

Year-over-year change

+0.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$1.3B$1.0B$256.9M79.7%
Sep 30, 2023$1.2B$978.9M$250.6M80.9%
Mar 31, 2024$1.3B$1.0B$286.9M78.4%
Jun 30, 2024$1.4B$1.1B$275.5M79.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+1.5 pts

Year-over-year change

Jun 30, 2023

+0.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver was the reduction in cost of revenue compared to the prior quarter, which supported gross margin expansion.

Gross margin improved from the previous quarter and was slightly higher than the same quarter one year earlier. Revenue and gross profit increased in both comparisons.

Monitor the trajectory of cost of revenue, as it increased in absolute terms compared to the prior year.

EW Gross Margin — Quarter Ended Jun 30, 2024